CB(1)2056/03-04 (01)

Supplementary information provided byHong Kong Society of Accountants

in response to issues raised at the 2nd meeting ofthe Bills Committee on Professional Accountants (Amendment) Bill 2004 held on Friday, 4 June 2004

Please find enclosed the following documents provided by the Hong KongSociety of Accountants in response to the requests made by members of theBills Committee at its 2nd meeting:

(1) Composition of the HKSA Disciplinary Panel 2004.

(2) Number of cases referred to the Disciplinary Committee/InvestigationCommittee of HKSA in the last 6 years that have been subject to judicialreview.

(3) Number of cases of minor complaints made to the Council againstHKSA members that have not been referred to the Disciplinary Panelbut for which a disapproval letter was issued by the Council in the last 6years.

Appendix 1

Lay membersBig 4 accounting firms

Deloitte Chau Shing Yim, David " Peter Griffiths (counsel) * " Tang Chak Yei " Wong Hak Kun, Kan " Peter Wong

Ernst & Young Marshall Bryes * " Boniface Ho " Carlyon Knight-Evans " Lau Chi Pong, Howard " Anthony Wu

KPMG Paul Jeremy Brough " Stephen Lee

PwC Nick Allen " Cheung Yuk Tak " Robert Gazzi " Leung Tai Chiu, Antony " Tim Lui

Non-big 4 accounting firms

Charles Chan, Ip & Fung CPA Chan Wai Dune, CharlesCharles Lo & Co. Lo Kai Ming, Charles Chu & Chu Wong Kwok Wai, Albert Graham H.Y. Chan & Co. Chan Ho Yin, Graham Grant Thornton Gabriel Azedo HLB Hodgson Impey Cheng Cheng Kwok Wai, David Ho & Ho & Co. Ho Sik LanHorwath Hong Kong CPA Ltd. Clement Chan Moore Stephens James FultonMoores Rowland Mazars Dainel Sham Nexia Charles Mar Fan & Co. Selwyn Mar PKF Leung Hok Lim RSM Nelson Wheeler Bruce Dunlop Wong Lam Leung & Kwok CPA Ltd. Wong Lung Tak, Patrick

Prof. Accountants in Business

Listed coysCITIC Pacific Ltd. Vernon Moore Wharf Quinn Law

Non-listed coysAsian Capital (Corp. Finance) Ltd. Patrick YeungBaker & McKenzie Tan Chuen Yan, Paul Carrington Investment Ltd. Iain Bruce Goldride Securities Limited Anthony Espina Management Capital Ltd. Yu Hon To, David

Composition of the HKSA Disciplinary Panel 2004

1

Lay members

Composition of the HKSA Disciplinary Panel 2004

Regulatory representationHKEx Paul Chow *SFC Angelina Kwan

AcademiaBaptist University Antonio Barreira *Chinese University Abdul Majid *City University Richard Ho *Lingnan University T.S. Chan *Open University Leung Chun Ming *

Retired individualsN/A Chan Sai HoiN/A Marvin CheungN/A Dudley Harding N/A Tsang Yiu Keung, PaulN/A Bernard Wilkinson

Lay members and others

Solicitor/lawyerDeacons Graham & James Mark Bradley *Denis Chang's Chambers Erik Shum *Herbert Tsoi & Partners Herbert Tsoi *King & Company Ma Ching Nam *Parkside Chambers Anthony Chan *Simmons & Simmons Wong Kwai Huen *Temple Chambers Anderson Chow * " Paul Shieh * " Rimsky Yuen *Wong Peter C. Chow & Chow Anthony Chow *N/A Wilson Chan *N/A Jonathan Harris *N/A Horace Wong *N/A Albert Xavier *

OthersDickson Concept (Int'l) Ltd. Edwin Ing *Great River Corporation Ltd. Con Conway *

Total number of Committee Members 66Total number of Lay Members (*) 24

2

Number of cases referred to the Disciplinary Committee/Investigation Committee of HKSA in the last 6 years that have been subject to judicial review

IC cases Note 2(a)

DC cases Note 2(b)

Note 1

Notes: 1. Five cases determined and all in favour of the HKSA. One outstanding - court hearing scheduled for October 2004.2. Basis of JR: (a) Instigating an investigation based on improper procedures and contrary to stated policy and legitimate expectations. (b) Two relate to use of stolen documents or documents illegally passed to the Society to instigate disciplinary proceedings. One relates to improper constitution of the Disciplinary Committee.

33

3

3

651

Appendix 2

Total number

18

of cases to JRNumber subject

Appendix 3

Number of minor complaints made to the Council against HKSA members that have not beenreferred to the Disciplinary Panel but for which a disapproval letter was issued by the Councilin the last 6 years (1999-2004)

6 yearsTotal

Total number of disapproval letters issued 27

Analysis by nature of complaint:

(i) Improper advertising 7

(ii) Technical breaches of professional standards 12

(iii) Registration and procedural matters 8

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Note: In future, under the Consent Order System, the above cases will not be dealt with by Council but will be referred to the Disciplinary Panel for consideration of consent order.